2017 FIDUCIARY INCOME TAX UPDATES 1

2017 Fiduciary Income Tax Updates

Here are 2017 income tax rates for fiduciary income tax returns:

 2017 Income Tax Rates for Estates and Trusts (Form 1041):

Taxable Income              Tax Rate

$2,550 or less                15% of taxable income

$2,550 – $6,000             $382.50 plus 25% of excess over $2,550

$6,000 – $9,150             $1,245 plus 28% of excess over $6,000

$9,150 – $12,500           $2,127 plus 33% of excess over $9,150

Over $12,500                 $3,232.50 plus 39.6% of excess over $12,500

It is essential that income tax rates be discussed and considered when establishing the terms of distribution in any estate plan.  Failure to distribute annual income could result in a significantly higher tax ratey.  Remember that in order for an individual, married or single, to reach the highest tax rate of 39.6% tax rate bracket, his or her taxable income must be in excess of over $400,000.00.

Laura M. Trujillo

ltrujillo@mclawfirm.com

480-994-2000

Disclaimer: This blog is for information purposes only. Legal advice is provided only through a formal, written attorney/client agreement